Over 25% of Micro and Small Enterprises in Northeast Struggling to Survive: Study

A recent study by the MSME Export Promotion Council (EPC) revealed that over 25% of micro and small enterprises (MSEs) in India’s Northeastern states are grappling with severe survival challenges. The region, home to approximately 74,000 MSMEs, faces multiple crises stemming from lack of affordable finance, rapid technological changes, and inadequate infrastructure.

While releasing the report in New Delhi, Dr. D.S. Rawat, Chairman of MSME EPC, highlighted that although startups in the region have helped generate employment, many remain in crisis due to insufficient support from larger units or institutions.

To address these issues, the EPC proposed a five-point strategy for reviving the struggling MSEs and fostering new startups. Key recommendations include:

1. State Government Intervention: Establish high-powered committees to prioritize and address the challenges faced by MSMEs in the region.
2. Conducive Environment: Develop a roadmap focused on skill development, MSME product showrooms, and stronger connections with R&D centers and global marketing agencies.
3. New Financing Model: Collaborate with the DoNER Ministry, multilateral institutions, and private players to create a more attractive investment environment and encourage entrepreneurship.
4. Single Window System: Introduce a ‘Single Window’ system to simplify processes for MSMEs and encourage private investment.
5. Private Sector Engagement: Foster collaborations with innovative companies and institutions, while encouraging private-sector funding through debt instruments with tax incentives.

The study also identified key challenges such as geographical barriers, underdeveloped transport systems, and low private-sector participation. It recommended building networks of development service providers to offer tailored solutions in technology, product development, and marketing, helping MSMEs navigate the difficult landscape.